FXStreet (Bali) - Alberto Muñoz, Ph.D., Forex Analyst at FXStreet, notes that GBPUSD will probably remain trading inside the 1.7080 - 1.7180 range post BoE rate call.
"Once again I would not expect any change neither in interest rates nor forward guidance in July meeting. At the current moment the Bank of England is sending contradictory messages on interest rates to the market, creating some uncertainty as everybody expect a rate hike during 2015 but nobody knows exactly when, especially as inflation surprised last month falling to 1.5%, thus remaining below the Bank of England’s target for six months in a row. Add to this that a stronger pound is acting as an unofficial interest rate rise which could hit UK's growth and that there's a slowdown in mortgage approvals, despite the rise in housing prices, making more difficult to forecast where interest rates will be in a year. After the news, don't expect too much volatility in GBPUSD, which will probably remain trading inside the 1.7080 - 1.7180 range."